The aim of this Dossier, prepared by the ICC Institute of World Business Law, is to give the reader a comprehensive overview of the difficulties encountered by arbitrators, governments and international organizations in calculating the amounts of recoverable damages in cases of international arbitration.

It is often said that an arbitral award is worth only as much as the ability to secure its enforceability. To the extent the vast majority of prayers for relief in arbitration are for money damages, an arbitral award granting damages is worth only as much as the ability to obtain payment, voluntary or compulsory, of such damages.

The Issues

When determining recoverable damages, a number of sensitive questions are raised, among them:

Is there a need for the adoption of a material rule that gives the arbitrator freedom to decide integral compensation of the damage, based on a caseby- case ruling in the matter of how much interest is to be charged?

When one of the parties is a sovereign state, how can international tribunals provide certainty and ensure transparency in the quantification of damages?

What are the factors arbitrators and courts in different regions consider in determining how damages should be mitigated?

In delay and disruption claims, how does one overcome the uncertainty for contractors in formulating their claims, for employers in defending them and for arbitrators and other tribunals in deciding them?

There is a need for both arbitrators and practitioners to understand these issues and to formulate answers to the questions raised. The present volume, written by expert arbitrators and practitioners, many of whom are affiliated with ICC’s renown Court of Arbitration, covers these and other vital issues and proposes practical solutions for resolving them.

Code ISBN :

978-92-842-1363-4

Publishing date :

2006

Language :

English

Dossier IV of the ICC Institute of World Business Law

INTRODUCTIONBy Richard H. Kreindler, Co-Editor

General characteristics of recoverable damages in international arbitration

Mitigation of damages

The expectation model

The obligation to mitigate damages

Punitive and exemplary damages in international arbitration

Damages in investor-state arbitration: applicable law and burden of proof

Recovery of damages for breach of an obligation of payment

Means to be made whole: damages in the context of international investment arbitration

Problems of delay and disruption damages in international construction arbitration